The Supreme Court has issued a written order regarding the Diamer-Bhasha and Mohmand dams fund case, directing that the funds collected for the dams be transferred to the public account of the federal government.
The decision had been delivered on October 9, with the federal government requesting the releasing of the funds to the federation and the Water and Power Development Authority (WAPDA).
According to the Supreme Court's decree, the money kept in the dams fund should be transferred to the federal government’s public account. It also directed to close the account established for the dams fund.
"A subaccount of the public account of the government should be opened for the transfer of dams fund," the order stated. The court further instructed the government to ensure the funds earn a markup from private banks, which would help maximize the amount available for future dam construction.
Also read: Govt asks SC for Mohmand, Diamer Basha dam funds
The court clarified that whenever the funds are needed for the construction of the Diamer-Bhasha and Mohmand dams, the money can be accessed from the designated government account. With these directives, the court disposed of all petitions filed in connection with the dams fund case.
On Oct 9, the SC sought actionable suggestions from WAPDA, the auditor general, and the attorney general for Pakistan for the proper utilization of the funds in the dams fund case. During the hearing, the apex court was apprised that a complete investigation found no misappropriation of the fund.
A three-member bench, headed by Chief Justice Qazi Faez Isa, conducted the hearing, where the court was informed that the dams fund currently holds over Rs23 billion, with Rs11 billion as the principal amount and over Rs12 billion in markup. The chief justice inquired whether the fund could be placed in private banks to generate additional markup.
Also Read: SC seeks actionable suggestions in dams fund case
The State Bank of Pakistan (SBP) legal advisor informed the court that the fund’s money is managed by the government, and any funds allocated for WAPDA must go through the public account.
On Sept 11, the federal government had requested the SC for release of the funds to the federation and the Water and Power Development Authority (WAPDA). Additional Attorney General (AAG) Aamir Rehman informed the court that a separate petition had been filed seeking the transfer of the funds. He said the account was opened by the State Bank of Pakistan under the supervision of the Supreme Court.
The funds in question were originally collected through a campaign initiated by the Supreme Court in 2018, with the State Bank of Pakistan managing the account under the court's supervision.
CJP Isa inquired about the total amount in the dams funds, to which WAPDA's lawyer, Saad Rasool, said they were approximately Rs20 billion.
During the hearing, the CJP questioned the origins of the case, asking how it initially began. The WAPDA lawyer explained that the Supreme Court had taken suo motu notice in 2018 during proceedings related to WAPDA projects, which led to the creation of a dedicated Dams Funds Implementation Bench. The bench, which convened 17 times, oversaw the use and allocation of the funds.
